Nintendo were forecasting global sales of 9 million Wii U consoles in this business year. They are now forecasting only 2.8 million will be sold. As a result the company has just issued a profits warning. It now expects to make an operating loss of 35bn yen (£205m) for the financial year ending 31 March 2014, compared with their initial forecast of 100bn yen operating profit for the period.
Analysts are saying that not only is their new product a problem, but so is their business model. Currently Nintendo only allow their games to be played on their own consoles, whilst their competitors are enabling games to be played on a variety of platforms.
Source: BBC News